Term

Margin of safety

A decision is made sturdier than seems necessary, like a ship built stronger than the calculations require. According to Varol, the higher the cost of a mistake, the bigger the margin should be.

Think Like a Rocket Scientist: The Workbook, Ozan Varol

Explained in

• Think Like a Rocket Scientist: The Workbook, Ozan Varol
• The Black Swan, Nassim Nicholas Taleb

  a cushion of money, time, and energy for when things don't go according to plan

• The Intelligent Investor, Benjamin Graham

  the gap between a thing's reasonable worth and the low price you actually paid for it; your cushion in case you're wrong

• The Psychology of Money, Morgan Housel

  a cushion of money and time set aside in case things don't go according to plan

All terms